Senator Urges FHA Vigilance Against Mortgage Fraud
A BW story on former subprime lenders making FHA-backed loans prompts Missouri Senator Kit Bond to call for greater anti-fraud efforts
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Senator Christopher Bond (R-Mo.), responding to a magazine cover story, formally demanded that the Housing & Urban Development Dept. (HUD) step up efforts to combat mortgage fraud in its newly expanded guaranteed mortgage program.
In letters to HUD Secretary Steven Preston and HUD Inspector General Kenneth Donohue, Bond cited the explosive growth in the government-backed lending program since the collapse of the subprime mortgage market. "I am very concerned that it is exposing the agency to more fraud, which I raised on the Senate floor earlier this summer," Bond wrote in a letter dated Dec. 1. He is the ranking Republican on the Senate appropriations subcommittee that oversees funding of HUD.